Lawsuit: College prep company is insolvent, owes millions

INDIANAPOLIS (AP) — A credit union that holds loans on thousands of prospective college students is suing an Indiana-based college test preparation company, alleging that it owes it more than $12 million.

Southeast Financial Credit Union’s federal lawsuit also contends that The College Network is insolvent and its owners are illegally trying to shield remaining assets from creditors.

The Indianapolis Star reports (http://indy.st/1LiPfmZ ) the Franklin, Tennessee-based credit union holds about $35 million in loans taken out by 10,000 customers nationwide of the college test preparation company.

College Network executive Mark Ivory says the company has not yet been served with the lawsuit. But he says “we will continue to defend our company against unfair allegations.”

Indiana and New York’s attorney generals sued The College Network in June, alleging false and deceptive business practices.

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Information from: The Indianapolis Star, http://www.indystar.com

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